Creating New Career Paths Through Apprenticeship

Danielle Zamora thought she wanted to be a lawyer. Raised in a small town in Essex, an hour outside of London, she would have been the first person in her family to go to university. But as she learned more about what law school entailed—years of general study before getting to the subjects she was really interested in—she began to question her decision.

That's when she stumbled on a listing for a data apprenticeship on the Morgan Stanley Equity Research team. The 18-month program would pay her a full-time wage, provide extensive on-the-job training and culminate in a Level 4 qualification—roughly equivalent to a year of college credit in the U.S. Upon completion, she would also be eligible to apply for a full-time role at Morgan Stanley, building on everything she had learned. “I thought it sounded too good to be true," says Zamora. “I'd always assumed that you had to go to university and then complete a graduate program to work at a place like Morgan Stanley."

Zamora started her application that night, and soon after, she was accepted into the inaugural 2020 class of apprentices at Morgan Stanley's London office, the newest addition to the company's steadily expanding apprenticeship program. 

Identifying Potential and Embracing Diversity

Apprenticeships have become more and more popular across the U.K., especially since the passage of the 2017 Government Apprenticeship Levy, which charges companies a small levy in exchange for access to a government fund that they can use to set up apprentice programs and recruit applicants. In 2019 and 2020, more than 719,000 people enrolled in apprenticeship programs, covering everything from banking and IT to construction and plumbing. Since 2011, Morgan Stanley has offered apprenticeship positions in a number of areas across the firm, including the Institutional Securities Group, Morgan Stanley Investment Management (MSIM) and Human Resources.

The programs are designed to reach talented young people who might have a natural aptitude for finance but haven't come through traditional avenues, such as university or graduate school. It's an essential part of Morgan Stanley's ongoing commitment to diversity and inclusion, intended to help build a workforce that better reflects society at large. “It's really about identifying potential," says Sophia Moore, Head of Early Careers at Morgan Stanley's London office, who manages the program for the Talent Acquisition team. “We’re trying to find people who are curious and passionate to learn, but who may not have access to, or would like to take an alternative route to, a traditional university education.”

Roughly 80% of an apprentice's time is spent working at the firm just like any other employee, with around 20% dedicated to study, training and skill development at a wide range of partner institutions, including Queen Mary University of London. Depending on the length of the specific program, apprentices receive either a level 4 or level 6 qualification—the latter is the equivalent of a bachelor's degree—or a level 7 qualification, the equivalent of a master’s degree. “The idea is to give apprentices the experience of what it's like to work in the financial industry," says Moore. “Apprentices are assigned to a team and provided the opportunity to be involved in key strategic work and projects.” 

Acquiring Real-World Skills

When Ciara Phillips accepted an apprenticeship role in Finance at Morgan Stanley's Glasgow office in 2018, she was initially intimidated by the idea of working alongside more experienced employees. “I didn't even know what debit or credit was," she says. But she quickly found herself surrounded by supportive and encouraging colleagues. “My teammates made sure I learned everything I needed to know to start working right away. I wasn't just photocopying or adding up things with a calculator."

At the end of the program, Phillips was offered a full-time Analyst position with Morgan Stanley, and it seemed as if she'd found herself better situated than many of her friends who had attended traditional university programs. The apprenticeship gave her the equivalent of university credit and fulfilled a three-year work requirement that the U.K.’s Association of Chartered Certified Accountants demands before allowing someone to undertake a final qualifying exam to become a chartered accountant. “Knowing what I know now, I don't think there's anything more valuable than being able to say you've worked three years in an industry right out of school," says Phillips “Because you've got the skills to show it and not just talk." 

Growing Together

In 2022, the number of new apprentice hires at Morgan Stanley grew by 31% year over year, with 54 new apprentices joining teams in the firm’s two U.K. offices. The firm has also partnered with Multiverse, an organization that provides an alternative to university via professional apprenticeships, in order to connect with an even bigger pool of applicants.

While Morgan Stanley has helped its apprentices master new skills, the firm has also benefitted from the new insights to problem-solving that apprentices can offer. “They bring a fresh perspective and tend to be very curious, which has really helped us to challenge the status quo, improve processes and be more efficient," says Sarah McCallum, an Executive Director in Equity Research who has worked closely with some of the interns. “We've learned as much from our apprentices as they've learned from us. They're coming in with completely different experiences, and a real diversity of thought, which is so important to us as we continue to serve our clients and build our business."

For Zamora, who was offered a full-time position with Morgan Stanley after completing her apprenticeship in 2022, the program represents a potentially monumental shift. “The idea that you can only get the best jobs if you've got a degree is really changing. This program is just 18 months long, and after that, you have an opportunity to be considered for a full-time position, just like university graduates are," she says. “And even if you don't stay on after your apprenticeship, you've had 18 months of work experience at one of the best companies in the field. That is valuable wherever you want to go in life."